LOS ANGELES (CBSLA.com/AP) — An energy company says expected costs from a massive gas leak in Porter Ranch have ballooned to $665 million.
Sempra Energy released the estimate in an earnings report Wednesday.
Southern California Gas Co., which is owned by Sempra, had estimated costs of $250 million to $300 million. That figure didn’t include potential costs from dozens of lawsuits or regulatory fines.
“Concurrently, the company has recorded an insurance receivable of $660 million,” the company said in a statement reporting its first-quarter earnings, adding that the gas leak-related expenditures are not a factor in those earnings.
The massive gas leak that spewed uncontrollably for nearly four months temporarily uprooted 8,000 households.
It was capped in late February, but thousands of families remain temporarily relocated in housing paid for by SoCalGas.
The company has said it expects insurance to cover more than $1 billion and it has accounted for $660 million in insurance receivables.
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